Is Obsolete ERP System Affecting Inventory and Order Fulfillment Process?

How would you feel if you incur huge losses of millions of dollars on revenues due to software for which you are already paying a hefty amount? Of course, you won’t like it, but sadly this has been a case with many enterprises when it comes to SAP/ERP implementation and operation.

“According to a survey that included 237 firms with average revenue of $439 million majorly from North America conducted by Panorama Consulting, an ERP and business transformation consulting firm. It was found that 48% said they were only able to realize project benefits of the ERP system implementation between 51% to 81%, and 43% of respondents reported a lower number – between 31% to 50%.”

The primary reasons behind the losses of most of these giant enterprises due to ERP implementation were –

  • It takes too much time and a workforce for implementation.
  • It affects the processes, and the legacy system of companies is significantly impacted, leading to chaos.
  • The rigid system causes delays or errors in data communication.
  • The rigidity of the system.
  • ROI is not that motivating.

Now, let’s understand how and on what scale a failed ERP implementation can harm the industry leaders with the help of stories of NIKE and REVLON.

Nike Loses $100 Million in Revenues.

According to 360cloudsolutions, Nike that once tried to implement the supply chain and ERP system in 2000 and 2001 by spending $400 million suffered a dip in their stock by 20% that led to a loss of $100 million in revenues. Nike spent $400 million in ERP system implementation and updating its supply chain system. They were surprised to find that what it got them was a ghastly 20% dip in their stock, $100 million in lost revenues. The issue here was because they implemented the system without proper testing, the system ended up making them order low selling sneakers instead of high demand sneakers, thus leading to a collapse of their supply chain system.

Thus the transfer of wrong information creates a lag in the company’s flow of work and also results in a substantial amount of loss.

Revlon ERP Failure

Recently, Revlon, a multinational cosmetics, skincare, and personal care company, also suffered massive delays due to SAP/HANA – ERP system implementation failure.

Revlon requested the US – Securities and Exchange Commission (SEC) to give them more time to file the audited reports for the fourth quarter and full-year 2018 audited results.

Now, this is just the start. Revlon came to know about the errors of 2017 in march 2019. The delay and implementation failure caused an operational loss of $85.2 million for the year and a net loss for the year of $294.2 million. They got into a mess that they are cleaning even now.

“Only over half of enterprise ERP users were content with the ERP portals, and one-in-five firms said that they were “very dissatisfied.” – Panorama Consulting.”

Similarly, many large establishments face problems during ERP system implementation in their legacy structure, leading to delay in filing reports, falling customer service levels, losing on profits, etc.

Moreover, ERP systems are very tough to integrate with POSes, marketplaces, accounting software, etc.

“SaaS inventory management software is designed with open Application programming interface (APIs) because of which it becomes super easy to integrate the inventory management software with offline POSes, accounting software, marketplaces like Amazon, Shopify, Magento, etc., CRMs, 3PLs, etc.”

L’Oréal’s Smart and Limited Use of ERP

On the other hand, if you take L’Oréal, they have an excellent run as long as inventory and supply chain management are concerned. They invested in automation to improve their supply chain. L’Oréal also has an ERP solution, but it’s good that it is not solely relying on an SAP/ERP, they are experimenting and moving towards the new-age solutions.

How Nike and Revlon are Coping With the ERP Failure

The magnitude of damage that SAP/ERP implementation has done to these enterprises is high and will take a lot of time for these companies to recover from it.

Nike and Revlon are, however, now moving towards finding software that is more flexible, easy to implement and operate. Because, with ERP, it becomes challenging to get real-time updates on inventory and orders that somehow hampers the efficiency of the entire order fulfillment process.

Considering that its been a long time since Nike suffered the ERP fallout, Nike seems to have smartly overcome that failure and is way ahead on the path to becoming an omnichannel industry leader with the help of inventory management software that centralizes its inventory. Nike has integrated its software into one single platform from where they can keep track of inventory and orders.

“SaaS inventory management software is an adaptable platform that can accommodate the changing requirements of your business. Be it for 100 products or 10000 products; it can manage the serial numbers and SKUs effortlessly. You don’t need to invest in extra infrastructure or hardware or worry about the accessibility of the software. The company can open new warehouses in new locations easily as everything is connected to one single portal that can be customized.”

On the other hand, Revlon is trying to improve its ERP systems now and is looking for a proactive order management process so that it can reach the required customer service levels. However, Revlon is still not able to recover or find a competitive order management system to be ready to go omnichannel.

Now there might be several questions arising in your mind like how to find an effective and easy to implement order fulfillment solution or an inventory management solution for your company? Or How to go Omnichannel?

Should I resort to an ERP or resort to any other advanced options?
Well, there is one solution to all of your problems. You need an “Omni-software.” software.

What is Omnisoftware Software?

We at Orderhive have coined the term “Omnisoftware” for software that makes the transition from multichannel to omnichannel a smooth affair with its automation. We can handle almost everything related to inventory, order & supply chain management, analysis & reporting, automation, purchase management, and return control.

Orderhive is an advanced Omnisoftware – SaaS inventory management software that is easy to implement and operate. The most significant advantage of this type of automated inventory management software is that you can access it from anywhere and manage your entire business while traveling and can know the real-time updates of your inventory and orders.

Let’s understand through 2 examples of implementation of SaaS inventory management software in companies like BYJU’S & AEYDE that how this modern age inventory management software is –

  • An easy to implement, modify and automated, unified portal
  • A proficient, proactive, and automated order, inventory & supply chain management system.

BYJU’S Implementation of SaaS Inventory Management Software

The most appropriate instance of a trouble-free implementation of SaaS inventory management software is BYJU’S, a $5 billion company that provides programs to students of the school and to those who are preparing for competitive exams. Their needs were ever-growing with their rapidly growing business. Also, they were very reluctant for an ERP system implementation because of its inflexible nature and didn’t transform according to a company’s growth. Hence, they chose saas inventory management software, Orderhive.

With its super-efficient team of developers and support, Orderhive, a saas inventory management software, caught up with the transitions, integrations, and requirements of the company.

Here are a few points explaining some of the significant problems of BYJU’S that Orderhive solved with the help of its highly efficient team. The below-given bullets also show that SaaS inventory management software is easy to implement, modify, and automated, unified portal.

  • The saas based inventory management software provided complex on-demand automation to help them scale up and track their virtual inventory and order fulfillment process.
  • It also enabled them to integrate with third-party applications since the saas inventory management software supports over 300 integrations(which is not possible in SAP/ERP due to its rigid nature).
  • Integrations with the marketing platforms allowed BYJU’s to keep track of their leads.
  • Provided a central repository to track sales activities and order management.
  • Role-based dashboards enabled each and everyone to access the portal and have a real-time view of the required information.
  • The SaaS inventory management software also automated their shipment tracking process.

Click here to know precisely how Orderhive became an integral part and reason for BYJU’s extraordinary growth.

Aeyde’s Implementation of SaaS Inventory & Order Management Software

Another illustration that proves that saas inventory management software is the software of the present times is Aeyde’s inventory and order fulfillment operations. They struggled with the order fulfillment process and were losing money and customers with lethargic inventory management flow. Keeping inventory levels optimized, struggling with supply chain management, and marketplace integrations with the third-party logistics company made their day difficult.

But now, with the help of a saas inventory management software in place, they were able to achieve a plain-sailing order fulfillment process.

” Constantine, the founder of Aeyde, says,” I invest 90% of my time in my core business activity, i.e., designing the best hand-crafted shoes. Orderhive acts as an inventory & order manager for us and all we are required to do is to make a timely purchase of our products. After Orderhive, we have doubled our sales without hiring a single resource with a 100% fulfillment ratio.”

To understand how Orderhive helped Aeyde improve its order fulfillment process read the below-given points.

  • The SaaS inventory management software offered FTP integration with third party store and Shopify
  • Straightforward and automated order fulfillment process, just log in to one portal and you are sorted for the day.
  • Automated reporting and analysis to understand the product’s life cycle, safety stock, low stock report, low stock trigger and raising of PO, understanding the best selling products, customers, top sales location, and simplifying the supply chain.
  • Supply chain management is crucial, and Orderhive handles everything efficiently as far as the supply chain is considered by tracking the inventory in each online and offline store.
  • Proactively notifying the need of the stock in a store and also providing the available inventory in the nearest store so that you can deliver the goods from that inventory quickly.
  • Syncing Moodja(a logistic center) with Shopify and thus streamlined the process between logistics and eCommerce store.

To know more about Aeyde’s success with SaaS inventory management software, click here.

The best part of using SaaS inventory management software is that you can implement it without hampering your current operations, it’s flexible. It can be molded in a way you want it to be.

If you have a multibillion-dollar company with large and complicated legacy systems, you can still very conveniently plant this software without changing your company’s operations and systems drastically. Instead, saas inventory management software will alter itself according to your company’s legacy.


To conclude, it is very much clear that there are vast chances of delays in operations, filing reports, and order fulfillment processes if you stick to an ERP system implementation. Nike and Revlon have suffered a significant amount of loss of money, customers, and brand value. Nevertheless, Nike made that mistake way back in the 2000s when SaaS was new. Still, Revlon did this in 2017-18, had Revlon opted for a SaaS inventory management software. They could have avoided the losses and crunch in the order fulfillment process smartly.

Going by the current changes in technology, SaaS inventory management software is a better option to go with than ERP.

Don’t wait for the wrong things to happen, predict them, and dodge them like a PRO.

Signup for a Demo now to know how a SaaS inventory management software would enhance your order fulfillment process, supply chain management, and inventory levels on the whole.

Devendra Gupta

Devendra Gupta

A creative human existing on the planet just like others, nothing new. A poet who loves to write stories that can influence people and hence can write anything (believe me I can). Would choose watching movies over novels. Loves to laugh, observe, and talk nonsense because if making sense was the reason for our existence then, believe me, God wouldn’t have put all of us here in the first place. Also, a Content Writer at Orderhive who strives to deliver something unique.

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